Alphabet stock fell 12.8 percent: Record $500 billion loss in a single day

Alphabet's shares fell 12.8 percent on Thursday, marking the sharpest single-day decline following an earnings announcement since the company's 2004 initial public offering; the loss in market value reached approximately $500 billion.

According to data, this loss represents the second-largest single-day market value erosion by a company in U.S. stock market history. The record holder is Nvidia, which lost $593 billion in December 2024. Following the latest decline, Alphabet's market value fell to $3.44 trillion.

The company's third-quarter free cash flow came in negative at $9.1 billion; this represents only the second quarterly negative cash flow since Google's public listing. Capital expenditures rose from $44.9 billion in the second quarter to $51.3 billion in the third quarter. The company maintained its forecast that 2026 capital expenditures could reach $205 billion.

Alphabet's largest revenue source, search advertising, grew 12 percent year-over-year in the third quarter, reaching $63.4 billion; however, it fell short of analysts' expectations of $64.9 billion. The slowdown from growth rates approaching 20 percent in earlier periods of the year triggered alarm among investors.

Google Chief Operating Officer Philipp Schindler acknowledged that searches in the artificial intelligence-powered AI Mode feature reduced traditional search revenue. While Alphabet's total revenue in the third quarter rose 25 percent year-over-year to $127.6 billion, net profit fell 25 percent compared to the same period last year, declining to $26.2 billion.

The company also disclosed that its future commitments, including data centers, equipment, and energy, exceeded $1 trillion.